Tinubu Approves Write-Off of $1.42 Billion and ₦5.57 Trillion NNPC Debts
President Bola Tinubu has approved the cancellation of debts totaling $1.42 billion and ₦5.57 trillion (approximately $3.85 billion) owed by the Nigerian National Petroleum Company (NNPC) Ltd to the federal government, as part of efforts to clean up the company’s finances and enhance transparency in the oil sector.
The presidency announced the decision on Monday, noting that it comes amid increasing fiscal pressures on Africa’s largest oil producer, including weak revenues and rising public debt. The move is also part of the government’s broader plan to reform NNPC ahead of planned divestments in oil and gas assets.
Details of the approval were provided by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which stated that the decision was made during the November Federal Accounts Allocation Committee meeting held last week. The meeting followed recommendations from a reconciliation panel tasked with reviewing NNPC’s financial obligations to the government.
According to the presidency, the debt waiver covers liabilities incurred up to December 31, 2024. These include obligations from production-sharing contracts, domestic crude supply arrangements, repayment agreements, modified carry contracts, and joint venture royalties.
However, the government said outstanding obligations incurred between January and October 2025 are still being pursued. Additionally, a long-standing dispute over an alleged $42.37 billion under-remittance by NNPC between 2011 and 2017 remains unresolved. While the government continues to raise concerns about the issue, NNPC has maintained that all revenues during the period were fully and accurately accounted for.
The presidency stated that the debt cancellation aims to improve transparency and accountability in Nigeria’s oil and gas industry, while resetting fiscal relations between the government and its state-owned energy company, which remains central to national revenue generation.
